Brazil’s slab prices continue to decline, with slab export prices stronger than domestic prices

Recently, due to the pressure of raw material prices and pessimistic market sentiment, the export price of Brazilian slab has continued to decline for the seventh week. At present, the mainstream export price of Brazilian SAE J2340 280B steel slab is about 540-550 US dollars/ton FOB, but the overall price is still continuing to decline.

In addition to the impact of raw materials and emotions, the continuous decline in Brazilian slab prices is also affected by the impact of US hot coils. At present, the main buyer of Brazilian slab, the hot coil price in the United States, continues to be in a downward trend. According to We's online prices, the current ex factory price of hot coils in the Midwest of the United States is about $725/ton EXW, which is about $475/ton lower than the mainstream level of $1200/ton EXW at the beginning of the year.

Some market participants have expressed that although some buyers are currently paying attention to the Brazilian slab market due to reasonable prices, the overall support for prices is still insufficient. In the current market situation, some steel mills have to choose to continue to lower their prices for sale, and it is expected that SAE J2340 280B steel prices may remain in a downward trend in the coming weeks.

However, it is worth noting that the export price of Brazilian slabs is still higher than the local price. We has heard that the transaction price of Brazilian slabs is about 520-530 US dollars/ton FOB. However, some market participants have told We that for American slab buyers, this price is relatively low and similar to the factory price of Brazilian slabs. Currently, the local quotation for Brazilian slabs is about 520-525 US dollars/ton DIF Brazil SAE J2340 280B steel.